DeKalb County approves purchase of CNG fueling station to serve sanitation fleet

DeKalb Countys Public Works and Infrastructure Committee on Aug. 28 approved the purchase and planned renovation of a compressed natural gas fueling station on Beaufort Highway in Chamblee for use by the countys Department of Sanitation.

The county will acquire the American Fueling Systems (AFS) facility, the sublease position, on-site equipment and associated revenue contracts for a $1.8 million purchase price and an estimated total transaction cost of $2.6 million after closing costs and planned improvements, DeKalb staff said. County presenters said the acquisition is expected to save sanitation about $940,075 in fuel costs annually, producing an estimated 2.8-year payback on the initial capital outlay.

The station, developed in 2011 and used by sanitation since 2015, has three dispensers and six hoses; sanitation uses about 90% of the fuel dispensed there, staff said. The county currently owns two other CNG fueling stations (south and central DeKalb) and is buying this northern site to reduce operating spread and secure access to fuel for trash-collection vehicles.

Jacob, a sanitation department representative, told commissioners the county will purchase the sublease interest from AFS and the equipment on site, then, at lease expiration, will contract directly with the PDK (DeKalb-Peachtree Airport) Airport Enterprise Fund, which is the underlying landowner. "We will make the provision to ensure that at the expiration of the sublease as well as the underlying ground lease the county will go direct with PDK and the sublease position will go away," Jacob said.

Bob Atkins, who addressed the committee about financing, said the county will modify an existing loan from the general fund to sanitation to fund the acquisition. He described a previously amended loan balance and a nine-year repayment structure; county staff said debt service would be repaid from anticipated fuel-cost savings.

Commissioners asked about the scope of the $500,000 estimated facility improvements. Jacob said that amount covers concrete/asphalt repairs, drainage and stormwater improvements and other station repairs. He also said the purchase provides speed and certainty compared with the time, permitting and site-selection process required to build a new station.

The staff presentation listed an initial refundable earnest money deposit of $100,000, followed by a $50,000 deposit at the end of due diligence; both deposits convert to nonrefundable at the close of due diligence. Staff reported completion of a Phase I environmental report, an equipment appraisal, and an inspection by Atlanta Gaslight, which manages the stations on contract with the county.

The committee approved the item by voice vote.

The county estimated a closing timeline of roughly 15 days after a 30-day due-diligence period, targeting mid-November for completion. Jacob and other staff said further work will include finalizing the sublease assignment approvals with Pope Retail, completing survey and title work, and executing the loan modification and closing documents.